Problem installing MySQL on suse 10.3

This is now the 3rd time I have wiped out and done a clean install of suse and keep running into the same poroblem when trying to install mysql.
I get as far as inputting the admin. pass once i try to add the admin pass I get the following error:

As far as I know mysql is running as it has been stopped then restarted with no errors. I also have checked to see if the mysql.sock file is in the directory in which it is not. Here Is what is in the directory:

I have noticed searching through the various sites that there seems to be quite a few people with the same problem, I just could not find a clear solution to the problem any help would be appreciated. Without this being resolved I can not continue my installation.

svr1:~ # cat /etc/my.cnf
# Example MySQL config file for medium systems.
#
# This is for a system with little memory (32M - 64M) where MySQL plays
# an important part, or systems up to 128M where MySQL is used together with
# other programs (such as a web server)
#
# You can copy this file to
# /etc/my.cnf to set global options,
# mysql-data-dir/my.cnf to set server-specific options (in this
# installation this directory is /var/lib/mysql) or
# ~/.my.cnf to set user-specific options.
#
# In this file, you can use all long options that a program supports.
# If you want to know which options a program supports, run the program
# with the "--help" option.

# Don't listen on a TCP/IP port at all. This can be a security enhancement,
# if all processes that need to connect to mysqld run on the same host.
# All interaction with mysqld must be made via Unix sockets or named pipes.
# Note that using this option without enabling named pipes on Windows
# (via the "enable-named-pipe" option) will render mysqld useless!
#

# required unique id between 1 and 2^32 - 1
# defaults to 1 if master-host is not set
# but will not function as a master if omitted
server-id = 1

# Replication Slave (comment out master section to use this)
#
# To configure this host as a replication slave, you can choose between
# two methods :
#
# 1) Use the CHANGE MASTER TO command (fully described in our manual) -
# the syntax is:
#
# CHANGE MASTER TO MASTER_HOST=<host>, MASTER_PORT=<port>,
# MASTER_USER=<user>, MASTER_PASSWORD=<password> ;
#
# where you replace <host>, <user>, <password> by quoted strings and
# <port> by the master's port number (3306 by default).
#
# Example:
#
# CHANGE MASTER TO MASTER_HOST='125.564.12.1', MASTER_PORT=3306,
# MASTER_USER='joe', MASTER_PASSWORD='secret';
#
# OR
#
# 2) Set the variables below. However, in case you choose this method, then
# start replication for the first time (even unsuccessfully, for example
# if you mistyped the password in master-password and the slave fails to
# connect), the slave will create a master.info file, and any later
# change in this file to the variables' values below will be ignored and
# overridden by the content of the master.info file, unless you shutdown
# the slave server, delete master.info and restart the slaver server.
# For that reason, you may want to leave the lines below untouched
# (commented) and instead use CHANGE MASTER TO (see above)
#
# required unique id between 2 and 2^32 - 1
# (and different from the master)
# defaults to 2 if master-host is set
# but will not function as a slave if omitted
#server-id = 2
#
# The replication master for this slave - required
#master-host = <hostname>
#
# The username the slave will use for authentication when connecting
# to the master - required
#master-user = <username>
#
# The password the slave will authenticate with when connecting to
# the master - required
#master-password = <password>
#
# The port the master is listening on.
# optional - defaults to 3306
#master-port = <port>
#
# binary logging - not required for slaves, but recommended
#log-bin=mysql-bin

# Point the following paths to different dedicated disks
#tmpdir = /tmp/
#log-update = /path-to-dedicated-directory/hostname

# Uncomment the following if you are using BDB tables
#bdb_cache_size = 4M
#bdb_max_lock = 10000

This is all I get. Im not sure what is going on, I forgot to mention that this was another problem as well on one of the other installs I tried. It is acting like it is not running. I have tried /etc/init.d/mysql start to start it and then run netstat -tap | grep mysql and still get nothing. I have also tried /etc/init.d/mysql restart to restart it and it says it terminates and then restarts but still get nothing from netstat -tap | grep mysql. Each install that I have done I have followed falkos tutorial and made sure I havent missed anything.

everything that I have been trying to do i noticed that it is looking for mysql.sock in this directory "/var/lib/mysql/" and it is actually in '/var/lib/mysql/.protected/mysql.sock' I con not move it from that directory for some reason.
Also by reading this log am I correct by assuming that it is set to port 0 and when I am running the connection it is looking for connection port of 3060 I belive is what it was?

Hey olli thanks for all of your help I belive I have messed up somewhere and am wanting to know if there is a way to delete the mysql install and start with fresh install following the how-to and the things you have given me to do?

Hi Olli
I decided I would start all over with fresh install from begining re-install OS and everything. I have no problems following the how-to but when it coes to installing mysql I get the following error and is now the point I am at.
svr1:# chkconfig --add mysql
mysql 0 off 1 off 2n 3 on 4 off 5n 6 off
svr1:# /etc/init.d/mysql start
Creating MySQL privilege database...
Installing MySQL system tables...
OK
Filling help tables...

Yes apparmor turned off still getting the same thing also another question, now scince this is the 4th time on fresh install about to be a 5t it looks like, mysql is looking for socket in /var/lib/mysql/mysql.sock when on every instal I do it is actually located in /var/lib/mysql/.protected/mysql.sock I am guessing I need to change this in /etc/my.cnf before I try to start my sql correct? Also when changing the location in my.cnf does it need to be changed in both [client] and [mysqld] ?